Correlation Between Genting Singapore and MGM Resorts
Can any of the company-specific risk be diversified away by investing in both Genting Singapore and MGM Resorts at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Genting Singapore and MGM Resorts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genting Singapore Limited and MGM Resorts International, you can compare the effects of market volatilities on Genting Singapore and MGM Resorts and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Genting Singapore with a short position of MGM Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genting Singapore and MGM Resorts.
Diversification Opportunities for Genting Singapore and MGM Resorts
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genting and MGM is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Genting Singapore Limited and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International and Genting Singapore is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Genting Singapore Limited are associated (or correlated) with MGM Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of Genting Singapore i.e., Genting Singapore and MGM Resorts go up and down completely randomly.
Pair Corralation between Genting Singapore and MGM Resorts
If you would invest 3,672 in MGM Resorts International on September 12, 2024 and sell it today you would earn a total of 22.00 from holding MGM Resorts International or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Genting Singapore Limited vs. MGM Resorts International
Performance |
| Timeline |
| Genting Singapore |
| MGM Resorts International |
Genting Singapore and MGM Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genting Singapore and MGM Resorts
The main advantage of trading using opposite Genting Singapore and MGM Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genting Singapore position performs unexpectedly, MGM Resorts can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MGM Resorts will offset losses from the drop in MGM Resorts' long position.| Genting Singapore vs. Caesars Entertainment | Genting Singapore vs. MGM Resorts International | Genting Singapore vs. Red Rock Resorts | Genting Singapore vs. Las Vegas Sands |
| MGM Resorts vs. Wynn Resorts Limited | MGM Resorts vs. Caesars Entertainment | MGM Resorts vs. Melco Resorts Entertainment | MGM Resorts vs. Penn National Gaming |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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